World's biggest: American, US Airways to merge

DALLAS -- American Airlines and US Airways will merge and create the world's biggest airline. The boards of both companies approved the merger late Wednesday, according to four people close to the situation.

The carrier keeps the American Airlines name but will be run by US Airways CEO Doug Parker. American's CEO, Tom Horton, will become chairman of the new company, the sources said. They requested anonymity because the merger negotiations were private.

A formal announcement is expected this morning.

The deal has been in the works since August, when creditors forced American to consider a merger rather than remain independent. American has been restructuring under bankruptcy protection since late 2011.

Travelers won't notice immediate changes. It likely will be months before the frequent-flier programs are merged, and possibly years before the two airlines are fully combined.

If the deal is approved by American's bankruptcy judge and antitrust regulators, the new American will have more than 900 planes, 3,200 daily flights and about 95,000 employees, not counting regional affiliates. -- AP